User Account

All Pages

Correlation between the returns of well-diversified stock

Assignment Help Finance Basics
Reference no: EM132248369

A recent advertisement on ABCNews promoted investing retirement savings using a "balanced" mutual fund. The advertiser's balanced fund is 50 percent stocks and 50 percent investment grade corporate bonds.

Expected Annual Return (stock) 11% Expected Annual Return (Bonds) 6%

Standard Deviation of Annual (stock) 20% Standard Deviation of Annual (Bonds) 8%

The historic correlation between the returns of well-diversified stock and investment grade corporate bond portfolios of 0.15 is expected to continue.

If you put $3,000 into this portfolio for 30 years starting today, how can I calculate the expected value of the portfolio at the end of the 30th year?

Reference no: EM132248369

Questions Cloud

Marginal change in y per unit change : The rate of return of index as a explanatory variable , x, determine the estimates of intercept regression line ( the predictions value of Yquem x=0).
What is mean of fish blowing syndrome : What is mean of fish blowing syndrome when manger as leader in organization ?
South africa appears to be gaining from such investment : Analyse the benefits South Africa appears to be gaining from such investment. List four multinational companies that have invested in South Africa.
How many awards-grants are being given : There are many viable approaches to searching for and locating project funding, but the most effective are those that utilize appropriate technologies.
Correlation between the returns of well-diversified stock : If you put $3,000 into this portfolio for 30 years starting today, how can I calculate the expected value of the portfolio at the end of the 30th year?
What are the after-tax cash flows associated : a) What are the after-tax cash flows associated for each relevant period?
Create a graph to analyze the data you have collected : For each issue, create a graph or chart to analyze the data you have collected. Cite at least five credible sources excluding Wikipedia, dictionaries.
Find the pile capacity you would expect : Consider the example problem given in Schroeder et al. (attached) that concerns capacity of driven pile in clay. Find the pile capacity you would expect

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd